SEC Continues to Educate Investors About SPAC Enforcement Risks

Special purpose acquisition companies, or SPACs, have quickly become a part of the Wall Street vernacular, but until recently, they were rare. In fact, the New York Stock Exchange went 10 years without listing a SPAC until 2017. Although the market seems to have embraced SPACs, regulatory authorities, including the U.S. Securities and Exchange Commission, have expressed concern that these investment vehicles may present certain risks for investors.

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